Relationship of product claims between private label and national brands

2015 ◽  
Vol 43 (9) ◽  
pp. 815-830 ◽  
Author(s):  
John L Stanton ◽  
James Wiley ◽  
Neal H Hooker ◽  
Ekaterina Salnikova

Purpose – The purpose of this paper is to compare the use of front of package (FOP) claims within product categories by private label (PL) products and national brands (NB). This research adapts an existing conceptual model exploring the marketing strategies of PL products and NBs. Design/methodology/approach – Information for this study came from Mintel’s Global (2009/2011). There were 10,791 products launched in 2011 in the US database, 8,120 NB and 2,671 PL food and drink products. For 2009: 5,838 NB and 2,118 PL that gives 7,956 food and beverages products launched in USA. Findings – PL and NB companies increased the usage of FOP claims, and also often moved in the same direction for some product categories. The greatest number of increases across product categories for PL and NB between 2009 and 2011 were Ethical-Enviromentally Friendly Packaging; Allergen; Fiber; Weight Control; Gluten Free; Kosher and No Additives claims. There were much less FOP that were decreased in usage. The claims that most frequently decreased were “Organic,” “Calories,” and “Vitamin/Mineral Fortified.” The categories that significantly decreased the “Organic” claim were Baby Food, Bakery, Breakfast Cereals, Fruit and Vegetables among PL product categories and Breakfast Cereals, Dairy, Side Dishes and Soup among NB categories. Research limitations/implications – The study is based on only a three-year time span. difference over a greater period of time could reveal more significant differences. Practical implications – The evidence from this research indicates that PL brands are matching NBs as they look to using other attributes and benefits. However, as PL sales increase, retailer margins increase which can lead to further aggressive marketing by the PL brands. Originality/value – The analysis of FOP claims for PL and NB over such a large sample has not previously been done.

2015 ◽  
Vol 13 (2) ◽  
pp. 123 ◽  
Author(s):  
Elias G. Rizkallah ◽  
Heather Miller

Motivated by profits and their growing power in the marketplace, retailers have been expanding their private-label brands to include more categories of consumer products and differentiation on quality to reach different consumer segments. This global phenomenon is adversely impacting the performance of national brands, thus creating a conflict between two powerful parties manufacturers of national brands and their large retailers who are supposed to be their helping hands in the marketplace. In this paper, the authors develop a conceptual framework, which captures the complexity and multidimensionality of the situation the stakeholders involved, the interest and power of each, the relationships among them, various strategies they employ, and the outcomes of the conflict. Several hypotheses were examined and tested through the empirical part of this study; for example, would the powers of these parties determine who is the loser and who is the winner or will the verdict be in the hands of the consumers? The study surveyed 281 consumers to assess their attitudes toward and preferences of store brands versus national brands across product categories and the underlying motivations. The paper concludes with recommendations for retailers and national brand manufacturers to win the hearts of consumers rather than exhaust their resources in the conflict.


2015 ◽  
Vol 130 (4) ◽  
pp. 1669-1726 ◽  
Author(s):  
Bart J. Bronnenberg ◽  
Jean-Pierre Dubé ◽  
Matthew Gentzkow ◽  
Jesse M. Shapiro

Abstract We estimate the effect of information and expertise on consumers’ willingness to pay for national brands in physically homogeneous product categories. In a detailed case study of headache remedies, we find that more informed or expert consumers are less likely to pay extra to buy national brands, with pharmacists choosing them over store brands only 9 percent of the time, compared to 26 percent of the time for the average consumer. In a similar case study of pantry staples such as salt and sugar, we show that chefs devote 12 percentage points less of their purchases to national brands than demographically similar nonchefs. We extend our analysis to cover 50 retail health categories and 241 food and drink categories. The results suggest that misinformation and related consumer mistakes explain a sizable share of the brand premium for health products, and a much smaller share for most food and drink products. We tie our estimates together using a stylized model of demand and pricing.


2018 ◽  
Vol 27 (6) ◽  
pp. 647-660 ◽  
Author(s):  
Peter J. Boyle ◽  
Hyoshin Kim ◽  
E. Scott Lathrop

PurposeThis paper aims to investigate price and objective-quality in durable product categories containing national and private-label (PL) brands.Design/methodology/approachUsing data from consumer reports objective-test results of 14,476 durable products available in the US the authors identified product categories containing both national and PL brands; constructed relative price- and quality-indices for each category; calculated price and quality differentials for each category then modeled the relationship between them; estimated the price premium associated with national brands (NBs); and computed price–quality (PQ) correlations for each category. The authors also analyzed the same relationships using subjective brand-perception data collected from 240 consumers.FindingsOverall the price of NBs in durable products was substantially higher than the price of PL brands despite there being little to no difference in quality levels overall, with the proportion of categories having higher PL quality nearly equaling that of categories having superior NB quality. Correlation between price and quality was moderate. Accuracy of consumer perceptions varied depending on the importance of brand in the purchase decisions for particular product categories.Originality/valueThis paper uses a large objective dataset spanning a period of more than eight years to assess price and quality for durable goods in categories offering PL brands. It addresses an under-studied area, that of PL brands for higher-priced, longer-lasting products. The findings contribute to an existing understanding of PLs, especially in the domain of durable-goods, as well as to the body of research in the area of PQ relationships. It also adds to our understanding of consumers’ perceptions of brand as a factor in durable product decisions and how the market aligns with those perceptions.


2020 ◽  
Vol 33 (5) ◽  
pp. 1047-1075
Author(s):  
Donald L. Ariail ◽  
Katherine Taken Smith ◽  
L. Murphy Smith

PurposeCongruence of personal values to organizational (the profession) values affects job performance, job satisfaction and ethical behavior. The purpose of this paper is to answer two research questions: (1) what are the personal ethical values of today's leaders in the US accounting profession and (2) are these personal ethical values congruent with the profession's ethical code?Design/methodology/approachThis study uses a survey approach to determine the personal values of US-certified public accounting leaders. The personal values of the Certified Public Accountants (CPA) leaders were measured using the Rokeach Value Survey instrument.FindingsFindings show that for each highly prioritized personal value, there is one or more parallel with the profession's values, as represented by the US American Institute of CPAs ethics code.Research limitations/implicationsThis study was limited by the time period used. Future studies could include other time periods. This study could be used as a starting point for longitudinal studies to determine if personal values of professional accountants change over time.Practical implicationsThis paper offers a fresh understanding of the relationship of accountants' personal values to professional values.Social implicationsThis paper provides insights into the person–organization (P–O) fit of US accountants within their profession.Originality/valueThis paper examines the P–O fit of accounting leaders, that is, the congruence of personal values and organizational values. The P–O fit contributes to job performance and job satisfaction.


2015 ◽  
Vol 24 (6) ◽  
pp. 646-659 ◽  
Author(s):  
Rita Coelho do Vale ◽  
Pedro Verga Matos

Purpose – This paper aims to analyze the impact of copycat packaging strategies on consumers’ product choices, assessing to what extent the adoption of this type of packaging increases the likelihood of purchase of private labels (PLs). Design/methodology/approach – Data were collected in a preliminary field study (1,032 observations), followed by two experimental studies. Study 1 analyzed to what extent PLs’ packaging similarity influences consumers perceptions regarding product quality and production origin across six product categories. Study 2 analyzed, in a simulated real retail setting, to what extent copycat packaging strategies influence consumers’ choice across 22 product categories. Findings – Results indicate that the higher the level of package similarity between PLs and national brands (NBs) (copycat strategy), the higher the likelihood that PLs’ products are perceived as being produced by one of the NBs’ manufacturers, leading to enhanced perceptions of quality of the PL products, and that the higher the level of package similarity, the higher the likelihood of consumption of PLs, especially when consumers are choosing products of utilitarian versus hedonic nature. Research limitations/implications – Data were collected in a south-western European country, which will aid the development of further studies in different retail settings. Originality/value – This paper analyzes the impact of copycat packaging adoption by retailers on consumers’ perceptions and preferences about PLs. To the authors’ knowledge, this study is the first to assess, across multiple product categories and use market copycats, the potential effects of PLs packaging strategies on consumers’ purchase behavior.


Author(s):  
Roger Martin ◽  
Richard Florida ◽  
Melissa Pogue ◽  
Charlotta Mellander

Purpose – This paper aims to marry Michael Porter’s industrial cluster theory of traded and local clusters to Richard Florida’s occupational approach of creative and routine workers to gain a better understanding of the process of economic development. Design/methodology/approach – Combining these two approaches, four major industrial-occupational categories are identified. The shares of US employment in each – creative-in-traded, creative-in-local, routine-in-traded and routine-in-local – are calculated, and a correlation analysis is used to examine the relationship of each to regional economic development indicators. Findings – Economic growth and development is positively related to employment in the creative-in-traded category. While metros with a higher share of creative-in-traded employment enjoy higher wages and incomes overall, these benefits are not experienced by all worker categories. The share of creative-in-traded employment is also positively and significantly associated with higher inequality. After accounting for higher median housing costs, routine workers in both traded and local industries are found to be relatively worse off in metros with high shares of creative-in-traded employment, on average. Social implications – This work points to the imperative for the US Government and industry to upgrade routine jobs, which make up the majority of all employment, by increasing the creative content of this work. Originality/value – The research is among the first to systematically marry the industry and occupational approaches to clusters and economic development.


2020 ◽  
pp. 231971452096870
Author(s):  
Sheikh Basharul Islam ◽  
Suhail Ahmad Bhat ◽  
Mushtaq Ahmad Darzi

Private-label brands (PLBs) are spreading their operations in all product categories and have marked their presence in almost all types of retail formats. They are posing stringent competition to national brands (NBs), be it offline (organized and unorganized) retail or online retail. Besides being favourites of value-conscious Indian consumers, PLBs are becoming a key focus of channel partners as well. In this context, the present research article is aimed at providing insights about how PLBs are able to garner the profit-centric interests of channel partners and how they are affecting the distribution of NBs in the unorganized retail sector. The study is based on information collected through semi-structured interviews with distributors and retailers from Haryana and Punjab. A thematic analysis was performed to draw meaningful inferences from the responses collected through the semi-structured interviews. The results reveal that channel partners’ interest in the high margins of private labels and their interest in maintaining long-term relationships with the latter make NBs vulnerable on parameters such as sales effort investment, in-store visibility, ordering quantity and frequency and numeric distribution. This study provides bases for understanding private label operations in the unorganized retail sector in India.


2011 ◽  
Vol 10 (2) ◽  
Author(s):  
Maria Patricia Gautama ◽  
Jony Oktavian Haryanto

Nowadays the development of Private Label Brands (PLBs) is increasing; this is proven by the increasing number of PLBs products in various product categories that we can found in several types of stores such as a supermarket, hypermarket format or in convenience store. PLBs have a very good opportunity in the market, considering many consumers are realizing that the price of PLBs which tend to be cheaper and with good qualities when compared with the price of national brands or product manufacturer. It also becomes interesting when it is known that the opportunities are widely open and it is proven with more and more retailers which aggressively producing PLBs. They give consumers more choices with a more affordable price but still provide good quality, especially in this world economy condition that tends to go down which of course also affect consumer purchasing power. By these reasons, the aim of the study is to determine whether the consumer and store image factors have a significant relationship in encouraging consumers to make PLB purchases, especially when it is moderated by PLB Image. The results showed that there are significant effect from consumer factors and stores image toward PLB purchase intention and its getting increase with the moderation of the PLB image.


2015 ◽  
Vol 10 (1) ◽  
pp. 102-121 ◽  
Author(s):  
Kandapa Thanasuta

Purpose – Private label brands have achieved double-digit growth in the Thai market. To expand market share, private label brands need to identify clearly what triggers consumer purchases. The purpose of this paper is to investigate the relationship between consumer decision-making styles and actual purchases of private label products in a Thai market context, using price consciousness, quality consciousness, brand consciousness, value consciousness, and risk perception as factors for investigation. Design/methodology/approach – Responses from a total of 240 respondents from four product categories were collected through mall intercepts in five hypermarkets and supermarkets in Bangkok, and a regression-based model was employed to identify the associations. Findings – The results indicate a significant relationship between price-conscious and brand-conscious consumers, and private label purchases and show that the relationship between quality-conscious, value-conscious, and risk-adverse consumers and private label purchases is insignificant. It concludes that price-conscious consumers are the ones most likely to purchase private label products in low-differentiation categories. An opposite relationship prevails for consumers who are brand conscious in low-differentiation, high-risk, and low-risk categories. Research limitations/implications – The outcomes of this research suggest that private label brands should maintain a low-price strategy while striving for continuous improvement in quality to capture additional quality- and value-conscious consumers. It also suggests that national brands invest in brand-building strategies rather than competing on price. Originality/value – This study enhances an understanding of consumer decision-making characteristics for actual private label purchases rather than the intention to purchase and is useful in suggesting an alternative to socio-economic factors as a method of identifying private label purchasers.


2015 ◽  
Vol 18 (4) ◽  
pp. 459-476 ◽  
Author(s):  
Maria Kniazeva

Purpose – The paper aims to understand how Eastern spiritual and Western secular traditions coexist in the US commercial marketplace and what lessons spiritual messages of Eastern wisdom offer Western consumers. Design/methodology/approach – The paper uses qualitative methods by engaging in close reading and analysis of the narratives on food and drink packages that have a direct reference to Eastern spirituality in the form of symbolic Eastern vocabulary and images. Findings – The paper proposes that artful sacralization of the spiritual to brand the mundane is an additional mode of cultural production used by marketers, and that this proposed mode extends the two modes (sacralization of the mundane and commodification of the spiritual) reported in previous studies. Research limitations/implications – The relationship between Eastern spirituality and Western commercialism deserves more in-depth studies. For example, how does the Western treatment of Eastern spirituality affect its perceived authenticity and purity? Finally, what do the newly wise Westerners do with mastery of an Eastern science of life? Practical implications – This work finds Western supermarkets to be emerging channels of Eastern spirituality. The author argues that narratives on food and drink packages perform as carriers of Eastern wisdom. Social implications – The author also finds that the borrowed spiritual wisdom of the East has yet to be reconciled with the prevailing secular norms of Western society. Originality/value – This has been the first known academic attempt to explore the spiritual connotation of the labels on branded food and drink packages sold in Western supermarkets.


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